Chavda Infra IPO opens on September 12
Chavda Infra, a Gujarat-based construction company, is planning to launch its initial public offering (IPO) on September 12th. The IPO is set at a total value of Rs 43.26 crore and will consist of only a fresh issue of 66.56 lakh equity shares. Here’s a breakdown of the key details:
1. IPO Size: The total size of the IPO is Rs 43.26 crore.
2. Price Band: The shares in the IPO will be offered in a price band of Rs 60 to Rs 65 per share. This means that investors can bid for the shares within this price range.
3. Utilization of Proceeds: The entire amount raised through the IPO, which is Rs 43.26 crore, will be used for specific purposes by Chavda Infra:
– Working Capital Requirements: A portion of the funds amounting to Rs 27 crore will be allocated for fulfilling the company’s working capital requirements. This can include expenses related to day-to-day operations, project execution, and managing short-term financial needs.
– General Corporate Purposes: The remaining funds will be utilized for general corporate purposes. This category is broad and may include activities such as business expansion, debt repayment, technology upgrades, or any other purposes that benefit the overall operations and growth of the company.
– Issue Expenses: A portion of the funds may also be allocated to cover the expenses associated with conducting the IPO, including underwriting fees, legal costs, marketing expenses, and other administrative costs related to the IPO process.
Chavda Infra’s decision to go public through an IPO is a means of raising capital to support its growth and financial needs. Investors interested in participating in the IPO can bid for shares within the specified price range during the subscription period starting on September 12th. It’s important for potential investors to carefully review the IPO prospectus and conduct their own due diligence before making investment decisions.
Chavda Infra, a construction and allied services provider operating in Gujarat, has meticulously allocated its equity shares for its upcoming IPO. Out of the total offering of 66.56 lakh equity shares, the company has reserved 3.36 lakh shares for the market maker, whose role is essential in maintaining liquidity and stability in the stock’s trading post-IPO.
The bulk of the offering, comprising 63.2 lakh equity shares, constitutes the net issue size. Within this net issue size, Chavda Infra has apportioned 31.6 lakh shares for qualified institutional buyers (QIBs), a category typically comprising institutional investors like mutual funds, banks, and insurance companies.
Additionally, 9.48 lakh shares, equivalent to 15 percent of the net issue, have been earmarked for high net worth individuals (HNIs). The remaining 22.12 lakh shares, representing 35 percent of the net issue, are designated for retail investors. This strategic allocation caters to a diverse range of investor categories, ensuring broad participation in the IPO and facilitating the company’s capital-raising objectives for its working capital and general corporate purposes. Investors will have the opportunity to subscribe to shares within the defined price band during the IPO subscription period.
Chavda Infra’s initial public offering (IPO) is a significant step for the company, as it represents 27 percent of its post-issue paid-up equity capital. The IPO subscription period is set to close on September 14th. Founded in 2012, Chavda Infra has built a strong track record in the contract construction services sector, having successfully completed over 100 projects valued at approximately Rs 670.99 crore. Additionally, as of May 2023, the company has 26 ongoing projects with an aggregate worth of around Rs 601.39 crore. These projects encompass a diverse portfolio, including four commercial projects, four institutional projects, and 18 residential projects.
Investors participating in the IPO can expect the basis of allotment for IPO shares to be finalized by September 20th. Successful applicants will have their equity shares credited to their demat accounts by September 22nd. The listing of Chavda Infra’s equity shares on the NSE Emerge is scheduled for September 25th.
Beeline Capital Advisors serves as the merchant banker for the IPO, playing a crucial role in facilitating the offering and ensuring regulatory compliance. Kfin Technologies, on the other hand, serves as the registrar to the offer, managing the administrative aspects of the IPO, including the processing of applications and the allocation of shares. These key service providers contribute to the smooth execution of the IPO process for Chavda Infra.
